Helpful Tips on trading cryptocurrencies

Disclaimer: I am not offering or telling advice on how to make money from trading cryptocurrencies, hence any gains or losses are your own choice and doing and I am to not be held accountable in any way whatsoever.

My first and only fixed rule: **Only trade/exchange what you can afford to loose completely.

Everything stems around this fact one way or another in the following post.

Exchanges

So if you are going to want to trade cryptocurrencies like bitcoin, peercoin, devcoin etc amongst each other or against the USD or EUR then you will need find an online exchange to do that.

Remember, Cryptocurrency exchanges are just websites like any other and they are not something that you fully control when handling your cryptocurrency. At any point the server could be compromised, have a hardware failure, be seized etc and if your coins were on the site and not withdrawn then you have to pretty much write the loss off and look for another exchange, there are some safeguards you can do to protect yourself against such happenings. I guess that leads nicely onto the next point about looking for an exchange to trade cryptocurrencies. Do your research Can not stress this enough. Research what others experience is of the site. Look for honest opinions on: **Trade Volumes **Withdraw issues / speed **Previous Hacks or compromises of server **Response time of Customer Support

Every now and then a new exchange comes along or you find an exchange with few reviews or mixed reviews and you are not sure what to trust or believe. The best way is to review the site yourself. I have done this many times and have found it rewarding to see the happy responses of people who are trying to start their new exchange and someone is using it and helping them iron out any bugs or usability issues. I usually start by depositing just more than the minimum amount required for withdraw (this way you can test the site for many things and not loose any real amount of money to worry about).

After depositing the small amount, see how long the transaction takes to be seen by the exchange. Most offer the visibility of unconfirmed transactions to the site, or use a block explorer to ensure the transaction is broadcast to the correct address. At this point I usually send the Support a ticket enquiring about my deposit in order to see what the response time is on the ticket raised. It is much better to find out now that the Support team might take 48 hours to get back to you, and you can see if the support speaks english and understands the nature of your enquiry etc than when you are trying to find out why your large withdraw is not showing up and now your balance is nothing.

Google searching for an exchange to trade your cryptocurrency can be useful but there is a site that lists pretty much all the cryptocurrencies and has links to show which exchanges support them and the trade volumes. This website is http://coinmarketcap.com/ to see the market details based off the exchanges listing the currency for devcoin can be seen here http://coinmarketcap.com/currencies/devcoin/#markets

I find it important to try a few exchanges and see which one suits you the best and you are happy with if you are looking to make a large trade. If your trade is so large that the volumes are not sufficient to fill what you are looking to cash out then perhaps you are looking to be too “Bearish” on the market and are selling your coins at a low price. If it is really necessary to cash out what you have then you can look to send separate amounts to different exchanges, but again you are selling into the current market that does not really support cashing out this quantity at this time. A much better approach would be to set up some sell orders at incremental values. By this I mean say the buy price is at 0.000020 BTC per DVC then put sell orders at 0.000021 BTC, 0.000022 BTC, 0.000023 BTC etc this method allows you to sell your coins as the market rises and you can catch the up-trends better this way and you get more for your coins, and you help protect the price / value of the coin.

IMPORTANT: At this point I can not stress enough the need to not leave ALL your coins on an exchange…. only leave on the exchange what you can afford to loose. Too many sad stories of people who lost hundreds and thousands of bitcoins when MtGox went down and numerous other stories of people who have lost money that was left on an exchange that got hacked. So do not leave unnecessary coins on an exchange, make your trades, place your sell orders and withdraw the rest back to your local wallet. Be sure to check frequently on your sell orders and withdraw when they are filled.

Decentralized Exchanges

A decentralized exchange is an exchange market that does not rely on third party service to hold customer’s funds. Decentralized exchanges also do not store any coins or private keys on central servers. Thus, hackers have to work significantly harder to track down these assets and the passwords which protect them. Trades here occur directly between users (peer to peer) through an automated process. Participants of a decentralized network have the power over their funds instead of a central authority. The promise of trustless decentralized exchanges is taking the middleman out of the picture altogether thanks to automation. Multi-signature escrow measures and proxy tokens are but a few of the ways such trustless is achieved. ©️ Credits to Cryptocompare.com

Decentralized Exchanges


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